{"id":126211,"date":"2026-09-25T12:58:54","date_gmt":"2026-09-25T07:28:54","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=126211"},"modified":"2026-09-25T12:58:54","modified_gmt":"2026-09-25T07:28:54","slug":"mbridge-project","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/mbridge-project\/","title":{"rendered":"mBridge Project"},"content":{"rendered":"<h2><b>mBridge Project Latest News<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Saudi Arabia quietly exited the China-led mBridge digital currency project in 2025, saying it was part of its original plan.\u00a0 <\/span><\/p>\n<h2><b>About mBridge Project<\/b><\/h2>\n<ul>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">mBridge is a <\/span><b>cross-border payments platform<\/b><span style=\"font-weight: 400;\"> designed to allow <\/span><b>central banks<\/b><span style=\"font-weight: 400;\"> to <\/span><b>transact directly using central bank digital currencies (CBDCs).\u00a0<\/b><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">It is a <\/span><b>joint project<\/b><span style=\"font-weight: 400;\"> launched in 2021 between the <\/span><b>Bank for International Settlements (BIS) innovation hub<\/b><span style=\"font-weight: 400;\"> and the <\/span><b>Bank of Thailand, <\/b><span style=\"font-weight: 400;\">the <\/span><b>Central Bank of the United Arab Emirates,<\/b><span style=\"font-weight: 400;\"> the<\/span><b> Digital Currency Institute of the People\u2019s Bank of China,<\/b><span style=\"font-weight: 400;\"> and the H<\/span><b>ong Kong Monetary Authority.\u00a0<\/b><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The project aimed to explore a <\/span><b>multi-CBDC platform shared <\/b><span style=\"font-weight: 400;\">among participating central banks and commercial banks, <\/span><b>built on distributed ledger technology (DLT) <\/b><span style=\"font-weight: 400;\">to enable <\/span><b>instant cross-border payments<\/b><span style=\"font-weight: 400;\"> and <\/span><b>settlement<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/li>\n<li style=\"text-align: justify;\"><b>Need for mBridge:<\/b>\n<ul>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The project aimed to <\/span><b>tackle <\/b><span style=\"font-weight: 400;\">key <\/span><b>inefficiencies in cross-border payment<\/b><span style=\"font-weight: 400;\">s, including <\/span><b>high costs, low speed,<\/b><span style=\"font-weight: 400;\"> and <\/span><b>operational complexities<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">It also aims to <\/span><b>address financial inclusion concerns,<\/b><span style=\"font-weight: 400;\"> particularly in jurisdictions where correspondent banking (which connects countries to the global financial system) has been in retreat, causing additional costs and delays.\u00a0<\/span><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The system is designed to<\/span><b> potentially reduce <\/b><span style=\"font-weight: 400;\">the <\/span><b>need for the US dollar <\/b><span style=\"font-weight: 400;\">to act<\/span><b> as an intermediary currency.<\/b><\/li>\n<\/ul>\n<\/li>\n<li style=\"text-align: justify;\"><b>How does mBridge work?<\/b>\n<ul>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The platform uses <\/span><b>blockchain technology,<\/b><span style=\"font-weight: 400;\"> which makes all the participating <\/span><b>banks connect to the same network,<\/b><span style=\"font-weight: 400;\"> which is shared among them.\u00a0<\/span><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The blockchain is a <\/span><b>shared digital record<\/b><span style=\"font-weight: 400;\"> which <\/span><b>helps keep in tracking<\/b><span style=\"font-weight: 400;\"> the <\/span><b>transactions<\/b><span style=\"font-weight: 400;\">, including maintaining who has paid whom and how much.\u00a0<\/span><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Participating <\/span><b>central banks<\/b><span style=\"font-weight: 400;\"> as well as <\/span><b>monetary organisations use their own computers on the mBridge network, <\/b><span style=\"font-weight: 400;\">which are called as <\/span><b>validating nodes.<\/b><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">They play a <\/span><b>role in maintaining the transactions<\/b><span style=\"font-weight: 400;\"> that have taken place as well as also help in <\/span><b>maintaining the shared digital record <\/b><span style=\"font-weight: 400;\">to maintain clarity on the transactions that have taken place.\u00a0<\/span><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">This means that <\/span><b>international payments no longer pass through several banks, <\/b><span style=\"font-weight: 400;\">rather they are <\/span><b>settled directly through one shared platform<\/b><span style=\"font-weight: 400;\">, <\/span><b>mBridge <\/b><span style=\"font-weight: 400;\">in this case.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"text-align: justify;\"><b>Why is it seen as China-led?<\/b>\n<ul>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The mBridge platform is <\/span><b>often said to be a China-led<\/b><span style=\"font-weight: 400;\"> cross-border digital currency project.\u00a0<\/span><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">China has been <\/span><b>involved in this project since the very beginning <\/b><span style=\"font-weight: 400;\">in 2021, as the Digital Currency Institute of the People\u2019s Bank of China was one of the founding partners. <\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><b>News: <\/b><a href=\"https:\/\/www.moneycontrol.com\/world\/saudi-arabia-exits-china-led-mbridge-digital-currency-platform-what-it-means-for-dollar-dominance-article-14033780.html\" target=\"_blank\" rel=\"nofollow noopener\"><b>MC<\/b><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>mBridge is a cross-border payments platform designed to allow central banks to transact directly using central bank digital currencies (CBDCs). Read more about mBridge Project, Country, Need, working, Latest News.<\/p>\n","protected":false},"author":23,"featured_media":126162,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[10487],"class_list":["post-126211","post","type-post","status-publish","format-standard","has-post-thumbnail","category-upsc-prelims-current-affairs","tag-mbridge-project","no-featured-image-padding"],"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/126211","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/23"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=126211"}],"version-history":[{"count":4,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/126211\/revisions"}],"predecessor-version":[{"id":126225,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/126211\/revisions\/126225"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/126162"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=126211"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=126211"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=126211"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}